WHEN YOU CONSIDER INVESTMENTS, WE SUGGEST BEAUTY WITH A 13.5% TAX-ADVANTAGED RETURN
Last week as the trees on AL88121JCS, our 121-acre plantation in Geneva County, AL were well
into their 13th growing season, the last of the trees to be removed in a thinning were hauled
off. The four photos below give you an idea of what the tract looks like now. These photos,
many others from the past, and a complete history of our operations are posted among the
attachments on www.se-timbersales.com.
We now offer to sell our interest in the tract for $100,321. To maintain his ownership, the
new owner must make eleven (11) annual payments of $14,472 to the landowner (James C.
Stephenson) and eleven annual payments of $1326 for annual inspections. During our ownership,
part of the payments to Stephenson and all of them for inspections were deductible; all our
profits from timber growth were taxable as long-term gains.
Caveat: Toproduce the harvest predicted by PTAEDA2V, the new owner must also apply 200
pounds of nitrogen and 50 pounds of phosphorus per acre in late March 2002 at an estimated
cost of $12,100. Timing of this operation is critical for two reasons. One, the annual growth
of plantations by months generally occurs as follows: APR 39%, MAY 19%, JUN 15%, JUL 12%, AUG
8%, and SEP 7%. Fertilizer can't be effective if it's not in the ground. Two, the nitrogen
applied will volatilize if it's not dissolved by rain and incorporated into the soil where
tree roots can get it.
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